Cosco Shipping International (hong Kong) Co., Ltd. · HKEX:517
Cosco Shipping International (hong Kong) — H1 2024 Earnings Presentation
35 slides from Cosco Shipping International (hong Kong)'s earnings presentation, Aug 23, 2024
Slide 1: 2024 Interim Results
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Slide 2: Agenda
Agenda 1 Company Profile 2 Highlights 3 Financial Performance 4 Market Review 5 Operational Review 6 Outlook 7 Appendix
Slide 3: Company Profile
cosco PH SEHK(S4)ARAA SH Ke Ww NG COSCO SHIPPING INTERNATIONAL (HONG KONG) CO,, LTD. GD Company Profile
Slide 4: Technology-based Shipping Service Company
Technology-based Shipping Service Company Green and digital intelligent ship services platform Establish a ship services platform providing integrated services, such as ship trading agency, insurance brokerage, supply of marine equipment and spare parts, production and sale of coatings and intellige
Slide 5: Shipping Services: The Five Business Segments
Shipping Services The Five Business Segments COSCO SHIPPING International (Hong Kong) takes a technology-based shipping service company as its strategic development direction, aims to provide global customers with full life cycle services for ships, and strives to build a green, low-carbon, digitall
Slide 6: Highlights
cosco Pie S2ZHR(SB)ARAA SHIPPING | cosco SHIPPING INTERNATIONAL (HONG KONG) CO., LTD Or, ( Highlights
Slide 7: 2024 Interim Result Highlights
2024 Interim Result Highlights +16% YoY +17% YoY +18% YoY 100% Profit attributable to Earnings per Share Dividend per Share Payout Ratio shareholders +17% YoY to +18% YoY to Remained at 100% +16% YoY to HK$0.2647 HK$0.265 HK$388,041,000
Slide 8: New Highs
1H 2H New Highs (thousand HKD) 500,000 Core business – Shipping Services PAT +21% YoY 400,000 217,018 300,000 In 1H2024, PAT of shipping services segments reached HK$286,182,000, 183,075 rose 21% YoY, which breaks a new record 200,000 194,020 88,062 of the Company’s interim results since 2003. 286,1
Slide 9: Key Profitability Indicators
Diversified shipping services portfolio Key Profitability Indicators demonstrated strong business resilience, with continued improvement in operational stability and improved key profitability indicators through continuous expansion of business scope and scale. GPM PBT Margin Net Margin +2 ppts YoY
Slide 10: Financial Performance
cosco Pie S2ZHR(SB)ARAA SHIPPING | cosco SHIPPING INTERNATIONAL (HONG KONG) CO., LTD Or, ( Financial Performance
Slide 11: P&L Snapshot
P&L Snapshot • Continued to trim down low-margin asphalt business. Revenue from (thousand HKD) 1H2023 1H2024 Change General Trading segment down 50% Revenue 1,620,612 1,752,887 +8% YoY. • Contributions from higher GPM Gross Profit 343,129 401,628 +17% segments, including coatings, ship Management Fe
Slide 12: Solid Financial Positions
Balance Sheet Solid Financial Positions (thousand HKD) As at As at As of 30 Jun 2024, the Company’s has ~HK$6 billion Cash on Change 31 Dec 2023 30 Jun 2024 Hand, while having zero debt. With its solid financial Total Assets 9,205,229 9,582,232 +4% position, strong balance sheet and high liquidity,
Slide 13: Market Review
cosco PH SEHK(S4)ARAA SH Ke Ww NG COSCO SHIPPING INTERNATIONAL (HONG KONG) CO,, LTD. } Market Review
Slide 14: China Container Market
China Container Market China’s Container Production（TEU） Average Price (USD) 800,000 2,500 700,000 2,000 600,000 500,000 1,500 400,000 1,000 300,000 200,000 500 100,000 0 0
Slide 15: Clarkson's Newbuild Price Indexes
50 70 90 110 150 170 190 210 230 130 Jan-2016 May-2016 Sep-2016 Jan-2017 May-2017 Sep-2017 Jan-2018 May-2018 Sep-2018 Jan-2019 May-2019 Sep-2019 Jan-2020 Clarkson’s Newbuild Price Indexes May-2020 Sep-2020 Jan-2021 May-2021 Sep-2021 Jan-2022 May-2022 Sep-2022 Jan-2023 May-2023 Sep-2023 Jan-2024 May-
Slide 16: Operational Review
STN se ees cosco Pie S2ZHR(SB)ARAA SURE NG COSCO SHIPPING INTERNATIONAL (HONG KONG) CO., LTD Operational Review
Slide 17: Segmental Performance
Segmental Performance 1H2024 Revenue Distributions 1H2024 PBT Distributions General Trading Intelligent Shipping Services 3% ~0% Others General Trading Ship Trading 2% Ship Trading 5% 3% Intelligent Shipping 11% Services Insurance Brokerage -4% 6% Insurance Brokerage 22% Revenue PBT Coatings HK$1,75
Slide 18: Ship Trading Agency
Ship Trading Agency 1H 1H Segment Revenue Segment PBT HK$49,554,000 +36% YoY HK$ 36,525,000 +41% YoY 1H2023 1H2024 Segment PBT Margin HK$36,370,000 HK$25,897,000 73.7% Newbuild Delivery 4 ships 10 ships Segment PBT Margin 71.2% 136,600 DWT 836,486 DWT 27 ships 19 ships Newbuild Orders 2,215,650 DWT
Slide 19: Insurance Brokerage
Insurance Brokerage 1H 1H Segment Revenue Segment PBT HK$111,633,000 +45% YoY • After the acquisition of Helen Insurance, amortization charges of insurance segment HK$75,808,000 increased to HK$1,840,000 from 1H2023 of HK$76,870,000 HK$57,861,000 +31% YoY HK$744,000. Segment PBT Margin 75.3% Segment
Slide 20: Equipment and Spare Parts
Equipment and Spare Parts 1H 1H Segment Revenue Segment PBT HK$907,067,000 HK$909,982,000 +0.3% YoY • Stable segment pre-tax margin reflects the solid average profit Segment PBT Margin Segment PBT Margin earned. 6.2% 6.2% HK$56,853,000 HK$56,572,000 +5% YoY 2023 2024 2023 2024
Slide 21: Coatings
Coatings 1H Segment PBT 1H2023 1H2024 Change HK$169,697,000 Share of profit from Nasurfar HK$5,837,000 +97,183% YoY Total Sales Volume of 52,543,000 58,367,000 +11% Vessel Coatings litres litres HK$125,118,000 HK$ 6,000 Share of profit from COSCO Juton Newbuild 35,813,000 39,233,000 +10% HK$141,466,
Slide 22: Intelligent Shipping Services
Intelligent Shipping Services 1H 1H Segment Revenue Segment PBT HK$333,000 (HK$12,121,000) • The loss was mainly due to the expenses incurred during the start- up period. N/A N/A 2023 2024 2023 2024
Slide 23: General Trading
General Trading 1H Segmental PBT HK$9,209,000 • In the first half of the year, the sales volume of ropes achieved considerable growth, and the Share of profit from Four decline in the price of raw materials such as Brothers Ropes HK$7,402,000 polymer fiber also supported the year-on-year +473% YoY i
Slide 24: Outlook
cosco PH SEHK(S4)ARAA SH Ke Ww NG COSCO SHIPPING INTERNATIONAL (HONG KONG) CO,, LTD. Outlook
Slide 25: Outlook
Outlook Ship Trading Agency With the high price of new build vessels, coupled with the upgrade of fleet with alternative green fuels as driven by the accelerating decarbonization Insurance Brokerage of the shipping industry, it is expected that the Expect Helen Insurance continue to make Group's shi
Slide 26: Appendix
cosco Pie S2ZHR(SB)ARAA SHIPPING | cosco SHIPPING INTERNATIONAL (HONG KONG) CO., LTD \we ( ) Appendix
Slide 27: Appendix I: 10-Year Revenue and PBT Breakdown
Appendix I：10-Year Revenue and PBT Breakdown Revenue 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 (thousand HKD) Coatings 1,391,004 1,109,466 637,033 888,766 959,576 1,002,416 1,085,028 1,685,183 1,067,153 826,045 Equipment 1,050,186 1,096,698 1,064,999 1,199,307 1,100,453 1,262,058 1,315,925 1
Slide 28: Appendix II: 5-Year Semi-annual Revenue and PBT Breakdown
Appendix II：5-Year Semi-annual Revenue and PBT Breakdown Revenue 1H2019 2H2019 1H2020 2H2020 1H2021 2H2021 1H2022 2H2022 1H2023 2H2023 (thousand HKD) Coatings 507,564 494,852 404,067 680,961 781,822 903,361 528,020 539,133 428,884 397,161 Equipment 640,083 621,975 714,393 601,532 806,005 772,884 897
Slide 29: Appendix III: 10-Year Dividends Record
Appendix III：10-Year Dividends Record DPS（HKD） Payout Ratio 0.45 120% 0.40 0.4 101% 99.60% 99% 99% 100% 0.35 0.3 77% 75% 76% 80% 73% 0.25 61% 0.22 55% 60% 0.225 0.2 0.18 0.16 0.19 0.15 0.165 40% 0.145 0.14 0.13 0.1 20% 0.05 0 0% FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23
Slide 30: Appendix IV: Ship Alternative Fuels – Compliance Path
Appendix IV：Ship Alternative Fuels – Compliance Path Tightening Greenhouse Gas Emission Reduction Strategies CO2 Emission Intensity 70% Lower 《Initial IMO Strategy on CO2 Emission GHG Emission Reduction of GHG Emissions Intensity GHG 50 % Lower from Ships》 Base 40% Lower Net Zero 《IMO 2023 Strategy
Slide 31: Appendix V: Vessel Fuels Solution Comparison
Appendix V：Vessel Fuels Solution Comparison Volume energy density Maximum battery life Engine Maximum power Emission Type Fuels (GJ/m3) (km) (MW) (kgCO2/kg) Current Heavy Oil 43 >20,000 km >50 MW 3.1 Clean Alternative LNG 20.8 >20,000 km >10 MW 2.54 4.4 (coal made) / Methanol 15.8 >20,000 km >10 MW
Slide 32: Appendix VI: DNV AFI Alternative Fuel Vessel Forecast
Appendix VI：DNV AFI Alternative Fuel Vessel Forecast
Slide 33: Appendix VII: Green Methanol Supply Forecast by Methanol Institute
Appendix VII：Green Methanol Supply Forecast by Methanol Institute
Slide 34: Disclaimer
Disclaimer This presentation contains certain forward-looking statements with respect to the financial condition, results of operations and business of COSCO SHIPPING International (Hong Kong) Limited and certain plans and prospects of the management of COSCO SHIPPING International (Hong Kong) Limit
Slide 35: Thank You!
Thank You！ Th a n k yo u fo r yo u r atte nt io n a n d su p p o rt to o u r co mp a ny Phone Email Company Website Aug 2004 (852) 2809 8888 / ir517@coscoshipping.com https://hk.coscoshipping.com/ (852) 2809 7888
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